Magna International Inc, one of the world's biggest manufacturers of auto parts, today said that it will acquire ixetic Verwaltungs GmbH for about €308 million ($396 million) in cash.

Bad Homburg, Germany-based ixetic is a manufacturer of automotive vacuum, engine and transmission pumps for the automobile industry with two manufacturing facilities in Germany, and one each in Bulgaria and China.

The ixetic product range includes hydraulic pumps for steering, chassis and transmission applications, vacuum pumps for brake systems, oil pumps, and innovative thermal management concepts for electric vehicles.

Its customers include car manufacturers such as Audi, BMW, Daimler, Ford, Porsche, Renault, Toyota, Volkswagen and all leading manufacturer of heavy and medium duty trucks such as Daimler, Navistar, Scania and Volvo.

ixetic had 2011 sales of approximately €300 million.

"ixetic's technologies, footprint and diverse customer base make it an excellent fit with our current capabilities in engine and transmission pumps" said Don Walker, CEO of Magna. "Together, our global reach and capabilities position us to support our combined customers and their desire for more efficient powertrain solutions."

In a separate transaction, Magna, through one of its wholly-owned subsidiaries, has signed an agreement with its joint venture partner to purchase the remaining 50 per cent stake in Concord, Canada-based STT Technologies Inc, a supplier of transmission and engine-related oil pumps serving the North American automotive market.

This transaction is expected to close in October, 2012.

"With these transactions, Magna's capabilities in this product area will be strengthened and its position as a leading automotive pump supplier capable of satisfying the global requirements of OEMs will immediately be enhanced," said Walker.

Based in Ontario, Magna is a Canadian car parts and assembly group that makes vehicles under contract for major carmakers, including Chrysler, Mercedes-Benz, and BMW.

It has approximately 115,000 employees in 296 manufacturing operations and 88 product development, engineering and sales centres in 26 countries.

With a market cap of $9.9 billion, Magna reported net profit of $1 billion on sales of $28.7 billion.